How to Talk to Kids about Money & Financial Responsibility

This podcast will focus on talking to kids (and teaching kids) about money. Raising children who understand money is vital to their future financial health, independence and future fiscal behavior. Children and teens need to learn the value of money as well as how to budget, plan, earn, save, invest and give to causes and charities that mean something to them. Money management is a life skill that all children must learn—so let’s get the information we need right here!

Special Guest: Neale Godfrey

This podcast provides:

  • Tips:

    • How to help our kids responsibly understand, save, spend and donate money.
    • How to run a work-for-pay program vs citizens of the household chores in your home.
    • What to pay for an allowance.
    • How to create a chore chart and what chores to include.
    • How to teach a budgeting habit.
    • How to give teens a finite budget for expenditures
  • Scripts: How to talk to our kids about giving, spending and savings.
  • Steps: Steps for creating a savings/spending system.

Important Messages:

  • Many children go into adulthood without knowing enough about money—many are financially illiterate.
  • Money can be a wonderful part of life that can allow us to give to those in need and realize our dreams OR it can tear people apart and create stress if we have financial worries.
  • It’s never too early or too late to start talking about money.
  • There is no entitlement program here. You earn money. Nobody is going to hand you money.
  • There are citizen of the household chores (behavioral) and work-for-pay (earn) chores.
  • There may not be things that children don’t understand but you still need to teach them about certain money concepts and money rules.
  • Give your children the opportunity to learn about money even if their choices aren’t always good ones!

Notable Quotables:

  • “Our kids are basically financially illiterate—which means they can graduate from high school and not even know how to make change…We have to give our kids educated choices…I saw my own kids not be able to handle money and I thought…I’ve got to do something about this. And so, I did!” ~ Neale Godfrey
  • “We want [our kids] to have a healthy attitude about money. We never want them to confuse net worth with self worth.” ~ Neale Godfrey
  • “The problem is we don’t have the script. So what I do, is open up the conversation and not have money be the biggest secret in the family and start talking about it and make it part of your daily routine.” ~ Neale Godfrey
  • “Money is only the result of work. It’s not for good behavior…It’s not if you get good grades. You don’t just get paid as a worker if you behave through the day… You earn it.” ~ Neale Godfrey
  • “Number 1: Don’t make money a big secret. Talk about it. Here’s our budget. This is what this costs…This is what we earn…if you keep it a secret, they’re gonna find out about money but they’ll find out from their friends…and you want to be the one who conveys the information.
  • Number 2: Get them involved in real budgets…show them the electric bill…get them involved in the real way money works.”  ~Neale Godfrey